News

SAR Details Four Nunn-McCurdy Breaches

4/21/2014

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The
Defense Department’s newest
selected acquisition report, released late Thursday, includes four critical
or significant Nunn-McCurdy breaches, including the Air Force’s Airborne
Warning and Control System Block 40/45 upgrade. The AWACS Block 40/45 upgrade
program acquisition unit cost increased 22.5 percent and the average
procurement unit cost increased 19.3 percent above the current acquisition
program baseline, states the report. That means the program is considered a
“significant breach,” because the unit cost increased at least 15 percent, but
less than 25 percent of the current acquisition program baseline. This was due
primarily to a reduction from 31 to 24 aircraft, states the report. “There were
also unit cost increases associated with a stretch-out of the procurement buy
profile caused by congressional reductions, which resulted in the loss of
synergies and required an additional year of interim contractor support,”
states the report. Though not a Nunn-McCurdy breach, the SAR also notes that
the Air Force’s Joint Direct Attack Munition program increased by $788 million,
“due primarily to a quantity increase of 30,758 tailkits … and associated
schedule and estimating allocations.”